KUALA LUMPUR: The Public Accounts Committee (PAC) will initiate proceedings on the Armed Forces Fund Board (LTAT) following the Auditor-General's Report and does not rule out the possibility of calling up the Defence Minister.

“Although the Auditor-General had listed three agencies for the PAC to concentrate on for proceedings, namely Felda, LTAT and Perbadanan PR1MA Malaysia (PR1MA) following the report for 2022, PAC has decided to look into LTAT first,” said its chairman Datuk Wira Mas Ermieyati Samsudin (pic).

ALSO READ: LTAT reserves negative since 2020 – AG’s report

The Auditor-General's Report tabled on Wednesday (March 6), found that LTAT’s reserves were in the negative with RM376mil in 2020 and RM258mil in 2021. In 2022, the figure was RM338mil.

The report also mentioned 41 old share portfolios with an unrealised loss of RM662mil, with action yet to be taken, and this had contributed to the negative balance of the reserves.

The report added that LTAT did not provide investment impairments in Boustead Holdings Bhd and Pharmaniaga Bhd, amounting to RM768mil and RM44mil, respectively.

“PAC is very concerned with LTAT's financial status after the revelation that its reserves are negative, therefore raising questions on its ability to pay dividends to contributors,” she said in a press conference in Parliament on Thursday (March 7).

ALSO READ: Fixing the LTAT muddle

The LTAT proceedings will begin after Hari Raya Aidilfitri and all parties including the three of the highest management officials who had resigned including the former LTAT chairman, former CEO and the former senior strategic officer.

“The committee is not ruling out the possibility of calling up the Defence Minister as the minister in charge of LTAT as the issue is very critical and involves 122,935 contributors comprising Armed Forces members as at March 13, 2023,” she said.

When met by The Star after the press conference, Mas Ermieyati said the defence minister who will be called is the “current one”.

The proceedings for Felda and PR1MA will begin after LTAT, she added.

On another note, she said seven PAC reports will be tabled in the first meeting of the current Parliament.